Meta has struck an unusual agreement with CEO Mark Zuckerberg designed to help him cover a potential multibillion-dollar California tax bill without loosening his grip on the company. Under the deal, reached on October 19, Zuckerberg committed to remaining a California resident for eight years after telling a special committee of Meta's board that he was weighing a move out of state if voters approve a proposed wealth tax this November.
New shares built to solve a tax problem
At issue is Proposition 40, a California ballot measure that would impose a one-time 5% tax on billionaires' wealth. Zuckerberg told the board he could face a "significant, multi-billion dollar tax" if the measure passes, and that the liability was significant enough to make relocating his primary residence out of California a real option.
